ESCA
Escalade Inc
Price:  
14.98 
USD
Volume:  
10,959
United States | Leisure Products

ESCA WACC - Weighted Average Cost of Capital

The WACC of Escalade Inc (ESCA) is 7.9%.

The Cost of Equity of Escalade Inc (ESCA) is 8.4%.
The Cost of Debt of Escalade Inc (ESCA) is 4.95%.

RangeSelected
Cost of equity7.3% - 9.5%8.4%
Tax rate20.9% - 21.3%21.1%
Cost of debt4.5% - 5.4%4.95%
WACC6.9% - 8.9%7.9%
WACC

ESCA WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium4.6%5.6%
Adjusted beta0.760.83
Additional risk adjustments0.0%0.5%
Cost of equity7.3%9.5%
Tax rate20.9%21.3%
Debt/Equity ratio
0.120.12
Cost of debt4.5%5.4%
After-tax WACC6.9%8.9%
Selected WACC7.9%

ESCA's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for ESCA:

cost_of_equity (8.40%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.76) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.